BTC, DOGE and XRP in Spotlight as Crypto Liquidations Down to $240 Million

As a seasoned crypto investor with a few battle scars to show for it, I must admit that the recent thinning of volatility on the market has been a breath of fresh air. After experiencing the rollercoaster ride of Bitcoin’s more than $1 billion liquidations in a single day over the past week, the current $240 million figure feels like a walk in the park.

The crypto market’s volatility is decreasing, evident by significant liquidation figures. As per CoinGlass data, the total liquidation in the last 24 hours was approximately $240 million. This figure stands in stark contrast to the over $1 billion recorded on at least two separate instances within the past week.

Bitcoin, Dogecoin and XRP spotlight

Based on the data from the liquidation process, a sudden drop in Bitcoin’s price down to approximately $94,000 took long-term traders by surprise. The total liquidations amounted to $64.92 million, resulting in losses of around $44 million for those who had bought Bitcoin on credit. Meanwhile, short sellers experienced liquidations worth about $20.92 million.

In simpler terms, approximately $6.57 million worth of XRP positions were liquidated recently, causing short traders to lose around $3.65 million. This event follows a week where XRP experienced both positive and negative trends, with its value increasing by nearly 253% over the past month, resulting in more XRP being stored in wallets.

In simpler terms, approximately $9.2 million worth of Dogecoin positions were closed (liquidated), with roughly equal amounts belonging to both long-term buyers and short-term sellers. This suggests that traders are uncertain about the future direction of Dogecoin due to its history of significant price fluctuations.

Where is market heading next?

Despite the anticipated increase in prices known as the “Santa Rally,” Bitcoin‘s price has remained relatively stable, entering a period of consolidation due to decreased volatility.

The value of a single coin decreased by 1.45% over the past day to reach $93,907.15 at this moment. This represents a 13% drop from its highest-ever recorded price of $108,268.45, which it reached just a week ago.

As a crypto investor, I’ve noticed that just like many other altcoins, XRP and DOGE tend to closely follow Bitcoin’s price movements, which could potentially cap their individual growth potential. Even with the significant whale activities surrounding these coins and other promising fundamentals, if Bitcoin doesn’t provide a lift, prolonged periods of downtrend might be a possibility for both XRP and DOGE.

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2024-12-24 13:29